Listed below are several transactions that took place during the first two years of operations for the law firm of Perez Associates. In addition, you learn that the firm incurred utility costs of $40,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period. Required: 1. \& 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of recelvables from clients that the firm would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. 2. Prepare an income statement for each year according to the accrual accounting model. Listed below are several transactions that took place during the second and third years of operations for the RPG Company. In addition, you learn that the company incurred advertising costs of $19,000 in year 2 , owed the advertising agency $4,400 at the end of year 1 , and there were no liabilities at the end of year 3 . Also, there were no anticipated bad debts on receivables, and the rent payment was for a two-year period. year 2 and year 3. Required: 1. Calculate accrual net income for both years. 2. Determine the amount due the advertising agency that would be shown as a liability on RPG's balance sheet at the end of year 2